Course Content: Section C - for those who makepayments from Accounts Payable in
corporations and companies
The IRS has focused audit enforcement on the payments to foreign companies and foreign
independent contractors that flow through your Accounts Payable department. Exposure to costly
sanctions is very real for companies that fail to identify all the payments that are subject to the
special tax rules for foreign status documentation and 30% tax withholding ... or fail to get the correct
Form W-8 documentation from the payee before paying ... or fail to spot bogus or insufficient
documentation ... or fail to withhold and deposit 30% or the tax treaty amount from each payment ...
or fail to correctly file the information returns Forms 1042-S and 1042. Let us give you the practical
understanding you need to handle these issues day to day in your company and implement
compliance procedures that will protect you in an IRS audit.
I. Introduction to tax law and regulations governing payments to foreign persons and foreign
entities
you to ask your specific questions about the situations you face day in and day out. Followup
support is included; email the questions that come up after you return to the office.
corporations and companies
The IRS has focused audit enforcement on the payments to foreign companies and foreign
independent contractors that flow through your Accounts Payable department. Exposure to costly
sanctions is very real for companies that fail to identify all the payments that are subject to the
special tax rules for foreign status documentation and 30% tax withholding ... or fail to get the correct
Form W-8 documentation from the payee before paying ... or fail to spot bogus or insufficient
documentation ... or fail to withhold and deposit 30% or the tax treaty amount from each payment ...
or fail to correctly file the information returns Forms 1042-S and 1042. Let us give you the practical
understanding you need to handle these issues day to day in your company and implement
compliance procedures that will protect you in an IRS audit.
I. Introduction to tax law and regulations governing payments to foreign persons and foreign
entities
- U.S. residency for tax purposes, versus U.S. residency for immigration purposes
- How U.S. citizens and resident aliens are taxed; how nonresident aliens are taxed
- Basic tax withholding requirements and amounts
- U.S. resident aliens under "green card" status, or under the Substantial Presence Test
- U.S. resident foreign corporations, partnerships, trusts and estates
- Puerto Rico; U.S. territories
- TINs (SSNs and EINs) and ITINs
- Form W-9 and its applicability to U.S. persons and entities worldwide
- Beneficial owners; disregarded entities; hybrid entities
- Undocumented recipients and presumptions of foreign status or U.S. status
- Forms W-8: W-8BEN, W-8ECI, W-8EXP, W-8IMY; what the foreign person must provide
- Exceptions for certain types of payments or types of recipients
- What is required when the veneficial recipient has an agent
- Reason to doubt the documentation: What to look for, and what you must do if there is
reason to doubt
- What tax treaties between the U.S. and foreign countries do, and what taxes they cover
- Who can have treaty benefits; where to find tac treaty information
- How treaty benefits must be claimed; how they are preserved; how they are lost
- Tax treaty benefits for independent contractors; royalties; prizes and awards; others
- Immigrant status versus nonimmigrant status, and how this affects you
- Who has the proper authorization to provide services for you in the U.S.?
- The common myth of the "honorarium"; what is a service and what is employment?
- Sanctions you face if you pay someone who did not have U.S. work authorization
- OFAC and SDN: Payments prohibited to persons or entities on these government lists
- Identifying taxable U.S.-source income; what is FDAP?; a few special exclusions
- Services; royalties; rights granted; digitized information; income from the oceans or from
space - Withholding the correct amount; depositing the withheld tax with the IRS
- Preparing the year-end IRS Form 1042-S; preparing IRS Form 1042
- What you must know about the new IRS Compliance Initiative Program audits of companies'
compliance with all of these tax laws and regulations; how to avoid risk!
you to ask your specific questions about the situations you face day in and day out. Followup
support is included; email the questions that come up after you return to the office.
COKALA offers you
practical training in
tax compliance
practical training in
tax compliance
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Nonresident Alien Payments - New 2-day training class
2008 dates and locations:
May 6-7, Washington DC
July 22-23, Chicago IL
September 16-17, Boston MA
October 7-8, Orange County CA
Learning Objectives:
2008 dates and locations:
May 6-7, Washington DC
July 22-23, Chicago IL
September 16-17, Boston MA
October 7-8, Orange County CA
Learning Objectives:
- Distinguish between payments to U.S. persons (reportable to the Internal Revenue Service
on Forms 1099) and payments to non-U.S. persons (reportable to the Internal Revenue
Service on Forms 1042-S and 1042) - Recognize the elements required under federal tax regulations for validity of Forms W-9, W-
8BEN, W-8ECI, W-8EXP, W-8IMY, and 8233 furnished as documentation of a payee's
identify and status for tax purposes - Recognize the elements that require you to doubt the documentation furnished by a payee
on Form W-9, Forms W-8, or Form 8233 - Identify payments required to be reported on IRS Form 1042-S
- Recognize the work eligibility status of foreign persons and whether federal regulations
permit those persons to receive payment for work in the U.S. - Identify the correct amount of U.S. tax required to be withheld from payments to non-U.S.
persons and entities - Prepare IRS Forms 1042-S and 1042, including reconciliation of the deposits of tax
liabilities accrued throughout the calendar year
Locations Faculty for this course
Register
By phone: call 734.396.9041. By mail: print registration form and fax to 734.428.0702, or mail to
COKALA Tax Information Reporting Solutions LLC, PO Box 2224, Ann Arbor MI 48106.
Fee
$880 course fee includes 2 days of training, course materials, followup support, and breakfast
and lunch on both training days
$792 earlybird fee is a 10% discount, requires payment 30 days prior to class
This is a 2-day course presented in a group-live format. Program level is Basic; there is no
prerequisite requirement for this class, and no advance preparation required.
Faculty presentations begin at 8:15 a.m. and end at 4:00 p.m. each day.
CPE CREDITS: 15
COKALA Tax Information Reporting Solutions, LLC is registered with the
National Association of State Boards of Accountancy (NASBA) as a sponsor
of continuing professional education on the National Registry of CPE
Sponsors. State boards of accountancy have final authority on the
acceptance of individual courses for CPE credit. Complaints regarding
registered sponsors may be addressed to the National Registry of CPE
Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417.
Web site: www.nasbatools.com.
Register
By phone: call 734.396.9041. By mail: print registration form and fax to 734.428.0702, or mail to
COKALA Tax Information Reporting Solutions LLC, PO Box 2224, Ann Arbor MI 48106.
Fee
$880 course fee includes 2 days of training, course materials, followup support, and breakfast
and lunch on both training days
$792 earlybird fee is a 10% discount, requires payment 30 days prior to class
This is a 2-day course presented in a group-live format. Program level is Basic; there is no
prerequisite requirement for this class, and no advance preparation required.
Faculty presentations begin at 8:15 a.m. and end at 4:00 p.m. each day.
CPE CREDITS: 15
COKALA Tax Information Reporting Solutions, LLC is registered with the
National Association of State Boards of Accountancy (NASBA) as a sponsor
of continuing professional education on the National Registry of CPE
Sponsors. State boards of accountancy have final authority on the
acceptance of individual courses for CPE credit. Complaints regarding
registered sponsors may be addressed to the National Registry of CPE
Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417.
Web site: www.nasbatools.com.
